BlackRock’s Bitcoin ETF Surpasses $2 Billion AUM, Market Remains Uncertain

The BlackRock iShares Bitcoin ETF (IBIT) achieved a significant milestone on Friday by becoming the first among the recently launched spot bitcoin products to amass over $2 billion in assets under management (AUM). However, despite a weekend rally, the market remains uncertain.

The BlackRock iShares Bitcoin ETF (IBIT) achieved a significant milestone on Friday by becoming the first among the recently launched spot bitcoin products to amass over $2 billion in assets under management (AUM). This accomplishment positions IBIT as a major player in the rapidly expanding Bitcoin investment market.

Notably, this achievement excludes Grayscale’s GBTC, which, at the time of its transformation from a closed-end fund to a spot ETF, boasted an impressive $30 billion in AUM.

Investors demonstrated their confidence in IBIT on Thursday, injecting an additional $170 million into the fund. The influx of capital allowed IBIT to acquire 4,300 additional bitcoins, bringing total holdings to 49,952. With the price of bitcoin surging above $40,000 early on Friday, the AUM soared past the $2 billion mark.

With its newfound status, IBIT currently stands as the third-highest asset-gathering ETF among the more than 600 funds launched in the past year. Nate Geraci, President of ETF Store, predicts that IBIT could soon claim the top spot, surpassing its competitors.

An Uncertain Market

After a disappointing few weeks of price action following the ETF approvals, Bitcoin gained ground over the weekend, climbing as high as $42,800 on Sunday. The price has since dropped back to the $42,000 level.

Sentiment remains mixed, however, with many analysts suggesting there is further downside to come.

Chris Burniske, Partner at venture capital firm Placeholder and former crypto lead at Ark Invest, wrote on X that bitcoin’s local bottom has yet to be reached, with a potential drop to the $30,000-$36,000 range on the cards.

He cautioned investors about incoming volatility and a potential test of the mid-high $20,000 area before an eventual move toward a new all-time high. Despite the short-term uncertainties, Burniske emphasized the robustness of the long-term trend, over the many months ahead.

Google to Allow ETF Ads

Looking ahead, tomorrow, January 29 marks a pivotal day for the cryptocurrency industry as Google is set to update its advertising policies. The revision will allow certain cryptocurrency products, including bitcoin exchange-traded funds (ETFs), to be advertised on major search engines. This development has sparked speculation within the crypto community, with potential implications for the market in the coming months.

Back in December 2023, Google announced its intention to revise its crypto-related ads policy on January 29, 2024. The update will permit ads from advertisers offering “Cryptocurrency Coin Trust targeting the United States.” This includes financial products such as ETFs that enable investors to trade shares in trusts holding substantial amounts of digital currency.

Source: Google

As part of the certification process, potential crypto trust advertisers must obtain Google certification, showcasing the necessary license from the relevant local authority. Advertisers must also ensure that their products, landing pages, and ads adhere to all local legal requirements in the targeted country or region. This policy is set to apply globally to all accounts advertising cryptocurrency products. The forthcoming changes have heightened anticipation within the crypto industry, awaiting the potential impact on advertising strategies and market dynamics.

—

—